Home Buying in Jacksonville>Question Details

Sheila Smith…, Home Buyer in Jacksonville, FL

I want to know if there are any bad credit mortgage assistant programs available for people like me that need a second chance.

Asked by Sheila Smith Shingles, Jacksonville, FL Wed Dec 26, 2012

Help the community by answering this question:


Good morning Ssshingles,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
0 votes Thank Flag Link Thu Dec 27, 2012
HI Mr. Curran, Thank you so much for this information. My credit score is currently 580. I will work on my score so I can move forward in purchasing a home. Thank you again. I appreciate you.
Flag Thu Dec 27, 2012
The best person to ask is a mortgage lender. There are programs available for just about every situation. If you do not have a mortgage lender with whom you are comfortable, I would be more than happy to give you the contact and names of several with whom I work on a regular basis.

0 votes Thank Flag Link Thu Dec 27, 2012
Sorry to say lenders are not out to give second chances. You will need to improve your credit history and history means it can take some time to do. Banks got in a bind loaning to people that did not pay them back and they are not going to do that again - at least not for now.
0 votes Thank Flag Link Wed Dec 26, 2012
Hi Tim, Thank you for the information. I was doing some research and I've noticed alot of companies on line that say they have 2nd chance bad credit home loans but it's hard to believe. I will improve on my credit score and move forward that way. Thank again
Flag Wed Dec 26, 2012
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